Ghana’s public debt profile in 2025 revealed a mixed picture, with significant gains in local currency terms contrasted by an increase when measured in U.S. dollars.
According to the Bank of Ghana, the country’s total public debt declined to GH¢641 billion in December 2025, down from GH¢726.7 billion a year earlier—marking one of the sharpest reductions in recent history. The debt-to-GDP ratio also improved considerably, dropping from 61.8% to 45.3%, reflecting progress in fiscal consolidation efforts.
However, in dollar terms, the trend moved in the opposite direction. Total public debt rose to $61.3 billion by the end of 2025, up from $49.4 billion in December 2024, largely due to exchange rate movements and the depreciation of the cedi.
The composition of the debt further highlights this contrast. External debt declined in cedi terms but edged up slightly in dollar value, while domestic debt increased steadily, reaching GH¢333.8 billion. This suggests a growing reliance on local borrowing, which could tighten liquidity within the domestic financial system.
On the fiscal front, government revenue improved, rising to 16.1% of GDP in December 2025, driven mainly by stronger tax collection. Expenditure remained controlled at the same level, helping to narrow the fiscal deficit to 3.1% of GDP, down from 5.2% the previous year. The country also recorded a primary surplus of 0.5% of GDP, indicating tighter fiscal discipline.
While the decline in the debt-to-GDP ratio signals positive momentum, analysts note that rising dollar-denominated debt and increased domestic borrowing present ongoing risks, particularly in the context of exchange rate pressures and financing constraints.
